Monarchy Resources Publishes Letter to Shareholders

First of all we want to thank you for your support and interest in our company over the past year. We are excited about what we have accomplished in 2013 and are even more excited to provide you with some of the milestones we hope to reach over the course of the coming year. We firmly believe that 2014 will bring a number of significant achievements for our company which will validate our choice to focus on developing our Mexican mining interests.

Monarchy Resources Inc. (OTCBB:MONK) invests in historically significant mining claims and mining interests with mineral reserves primarily consisting of precious metals. Through 2013, Monarchy Resources took increasing interest in producing gold and silver opportunities in Mexico. In 2013, the Company acquired an initial 45% interest in New World Metals, a Mexican-based mineral development, ore processing and refining company focusing on expanding its production of gold and silver in Chihuahua, Mexico. NWM has three operational mines currently producing approximately 90 tons per day.

Over the course of 2013, we accomplished the following:

Acquired 45% interest in New World Metals

Made deposit on a 100 ton per day ore processing mill

Stockpiled over 8000 tons of ore at its three mine locations

Pumped the La Luna Mine free of water and lowered shaft by 7 meters

Made major repairs and upgrades to structure at Morelos Mine

Lowered shaft by 8 meters and began production at the Peneto Mine

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To us, however, this is just the start of what we want to accomplish in 2014. Some of our key milestones we wish to achieve are the following:

One of the Company's goals since acquiring an interest in our Mexican mining projects is to build our own processing facility. In 2013 we placed a deposit on a 100 ton per day processing facility.

The Company is looking at completing this acquisition and setting it up through 2014 to enable the company to begin processing its own ore.

Expand our Board of Directors

The Company recognizes a need to expand its board of directors, and is looking forward to expanding its board of directors through 2014. The Company is currently speaking with promising candidates and will be announcing these appointments as they occur.

Increase Production at Our Three Producing Mines

The Company is pleased with the amount of ore that it has stockpiled to date. The Company is seeking to increase its production over the course of the coming year so as to have an ample supply for when the Company is in a position to begin processing ore. We are currently producing at all three mines at a total combined rate of 90 tons per day. The Company believes we can significantly increase this rate of production in 2014.

Increase Communication with our Shareholders

The Company will continue to keep its shareholders up to date through its regulatory filings and press releases, as well as keep its website up to date at www.monarchyresourcesinc.com. The Company is considering hiring a third party corporate communications firm to keep its shareholders up to date. We will also host investor conference calls from time to time to keep shareholders updated.

Expansion of Advisory Board and Key Personnel

As the Company expands its focus and further develops its projects, we recognize the need to hire experts, advisors, and key personnel that will assist us in developing the Company from an operational standpoint as well as introducing the Company to key industry players and strategic partners. We have several potential candidates in mind, and are anxious to announce the appointment of these individuals.

Engagement of Investment Banking Firm

Since our Company's founding in 2010, Monarchy Resources has largely relied on "friends and family" to finance our growth, develop our products and services, and meet our working capital requirements. However, we believe to move our Company through its next critical phase of growth, development and commercialization, and to attempt to ensure we are positioned to support our research collaborations and market penetration strategies, another financing channel is needed. We will actively be soliciting investment banking firms to serve as our investment banker and financial advisor to assist us in attempting to raise new capital in 2014.

Concluding Remarks

By way of this letter, we have endeavored to share several of the many positive developments occurring at our Company. We urge you to read our recent filings as well as our 10-K which will be published this month for additional details on our key growth strategies and critical milestones achieved, thus far. The Company is optimistic about its future and very excited about our projects in Mexico.

In closing, I'd like to use this opportunity to express my sincere appreciation to all of my fellow shareholders for your commitment to Monarchy Resources' mission, and for your continued trust and confidence in our leadership. I'd like to wish you all a very happy and prosperous New Year!

Respectfully,

MONARCHY RESOURCES INC.

Jose Perez, President and Chief Executive Officer

About Monarchy Resources

Monarchy Resources ("Monarchy") engages in a variety of investments in historically significant, mining claims and mining real estate world-wide with mineral reserves primarily consisting of precious metals. Monarchy Resources takes a minority, non-operated position in precious metal mining projects. We combine experienced management, low overhead and capital towards promising strategic acquisitions. We allow operators to remain focused on their operated interests and in return Monarchy receives revenue share of the profits from such participation. Monarchy's non-operated position continues to gain momentum as Monarchy partners with more operators and land professionals.

About New World Metals

New World Metals Corporation ("NWM") is a mineral development, ore processing and refining company focusing on expanding its production of gold and silver in Chihuahua, Mexico. NWM has three operational mines in Mexico.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that involve risks and uncertainties, including the Company's beliefs about its business prospects and future results of operations. Some factors that could cause actual results to differ materially include economic and operational risks, changes in anticipated earnings, continuation of current contracts, and other factors detailed in the Company's filings with the Securities and Exchange Commission, including its most recent Forms 10-K and 10-Q. The Company forecasts provided above are dynamic and therefore refer only to this release date. The Company does not undertake to update any forecasts that it may make available to the investing public.